AI and Privacy: What Australian Businesses Need to Know

AI and Privacy: What Australian Businesses Need to Know

From 10 December, entities covered by the Australian Privacy Principles (APPs) will have additional privacy policy obligations if they use AI or other computer programs to assist with automated decisions that significantly affect individuals.

This includes certain AML/CTF reporting entities.

If your business uses AI for activities such as:

• Customer due diligence
• Customer onboarding
• Risk assessment and scoring
• Transaction monitoring
• Compliance screening
• Other automated decision-making

you may need to update your privacy policy to explain the types of personal information used and the types of automated decisions involved.

For accountants and tax professionals using AI, privacy and professional responsibilities are also important. The Tax Practitioners Board (TPB) guidance emphasises that practitioners must:

✓ Remain responsible for decisions
✓ Exercise professional judgement
✓ Verify AI-generated outputs
✓ Maintain appropriate records
✓ Ensure appropriate quality management and supervision
✓ Protect client confidentiality and comply with Privacy Act requirements

AI can improve efficiency, but it does not replace professional responsibility.

At Gavin Ma & Co, we help Australian businesses navigate tax compliance, accounting and regulatory requirements while keeping up with changes in technology and legislation.

If your business uses AI in accounting, compliance or customer onboarding and you’re unsure whether your privacy policy needs updating, speak with your accountant or professional adviser.

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